GS4 · 20 marks · 250 words

A mid level manager in a food and beverages firm has been assigned the responsibility to deal with tensions arising in a rural area between the firm and the local farmers. These farmers supply the company with bananas, which are used exclusively by the company in its niche products. The banana plantations are growing a variety developed by the firm. The core issue revolves around the perceived violation of company's IPR as many of the farmers in the neighbouring areas have also started growing the same variety of banana. It is suspected that the farmers with whom the company had a contract have shared the breed with others in the region. The legal department of the firm is of the opinion that a legal complaint against the farmers is the only way to protect the IPR of the company. It would also set a precedent for the future. However, many in the firm also believe that such a step would escalate the matter. In such a scenario, identify the key issues to be addressed. What measures would you suggest to deal with these issues?

Answered by 7 toppers · CSE 2019–2021

Syllabus: Public/Civil service values and Ethics in Public administration: Status and problems; ethical concerns and dilemmas in government and private institutions; laws, rules, regulations and conscience as sources of ethical guidance; accountability and ethical governance; strengthening of ethical and moral values in governance; ethical issues in international relations and funding; corporate governance.

How toppers approached it

From all 7 answers · about 360 words · 29% drew a diagram.

Opening

  • No separate opening71%
  • A definition14%
  • A restatement14%

Body

  • Points86%
  • Points and prose14%

Close

  • A summary57%
  • A way forward29%
  • No separate close14%

The toppers’ answers

Nupur GoelAIR 11 · CSE 2019 · 492 wordsTheir whole copy

Opening

The various stakeholders are :-

FactValues
- Tension between firm & local farmers- IPR policy of company
- IPR law getting violated- Livelihood of farmers
- loss to company- future precedence
- social justice
- govt policy

Key issues involved here are :-

Body · points and prose

future precedence | | | - social justice | | | - govt policy |

Key issues involved here are :-

  1. Violation of company's IPR perceived as farmers might have shared the breed with fellow farmers.
  2. whether to file a case against farmers or not :- filing a case will protect companies' IPR but lead to loss of livelihood & huge financial loss to farmers.

Measures to deal with such issue :-

  1. First, it should be enquired & established without doubt whether farmers have shared the breed with others or not. Enquiry must be conducted in an unbiased & fair manner through thorough investigation of farmers & their fellow farmers' fields.
  2. The contract signed with the farmers also need to be scrutinised first whether they can share the breed or not. What are the possible causes of action and punishment stipulated in the contract.
  3. Now, there must be session/meeting with the given farmers to give them a fair chance explaining their side to the company management. Herein, they must also be made aware about the contract & details of the same.
  4. If it is found out that farmers have shared their expertise, it must be known the reason for the same. If it is found that it is permissible under law [Monsanto case] then no action can be taken against them. They must however be given a warning to stop doing the same as it is incurring loss to the firm. The contract can also be made more comprehensive & holistic covering this issue.
  5. However, if it is found out that it is not permissible under law, then first a warning must be given to them to stop these malpractices. Regular surprise checks & vigilant monitoring must be done to ensure they aren't able to do it in future. Herein, we can rope in the farmer community leaders to ensure that contract is implemented strictly. It must also be told that strict legal action will follow if found again.
  6. Fellow farmers - Meanwhile, firm might enter a contract with these farmers too for giving such bananas to the firm. In this way, it'll ensure that their right to livelihood isn't taken away & they don't come to the brink of stress. Firm might ask for some compensation from these fellow farmers as they knowingly stole/took such confidential information from the contracted farmers.

Close · a way forward

WAY FORWARD :- As said by Narayan Murthy, the firms must share the resources with the society to be sustainable in long-term. We must move from capitalism -> compassionate capitalism wherein social justice & corporate governance are given more value than blind profiteering.

More on Corporate Governance

Ethics in the private sector: boards and disclosure, corporate social responsibility, regulatory capture, business and society.

All GS4 questions on Corporate Governance